Company Number: 15220720

Analysis Date: 2025-07-29 12:27 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with net current liabilities and net negative shareholders’ funds shortly after incorporation, indicating a fragile financial position.

2. Key Concerns:

• Negative Net Current Assets: With current liabilities (£8,975) substantially exceeding current assets (£2,433), the company faces working capital deficiency of £6,452, signaling immediate liquidity risks.
• Negative Net Assets: Total net liabilities of £6,316 imply the company’s obligations surpass its assets, raising solvency issues.
• Lack of Operating History and Employees: Incorporated in October 2023 with no employees and minimal fixed assets (£136), the company’s operational sustainability and revenue generation capacity remain unproven.

3. Positive Indicators:

• Compliance: No overdue filings for accounts or confirmation statement indicate adherence to statutory requirements.
• Ownership and Control: Sole control by a single director and shareholder (75-100% ownership) may facilitate streamlined decision-making.
• Micro-Entity Status: The company benefits from simplified reporting requirements, reducing administrative burden at this early stage.

4. Due Diligence Notes:

• Investigate the nature and origin of current liabilities to assess whether they are trade creditors, director loans, or short-term borrowings.
• Review cash flow forecasts and funding plans to determine how the company intends to resolve its negative working capital position.
• Clarify business model and revenue strategy, especially given the retail mail order/internet sales SIC code and absence of employees.
• Monitor director’s background and financial capability to support the company given the negative equity position.